IOB profit drops 46.1%

Indian Overseas Bank (IOB) has reported a 46.1 per cent drop in net profit during the first quarter ended June 30 at Rs 125.8 crore, compared to Rs 233.4 crore, during the same period last year. The lender attributed the drop to higher provisioning. Total income of the bank rose by 14.25 per cent to Rs 6,187.1 crore from Rs 5, 402.8 crore.

M Narendra, chairman and managing director, IOB told reporters higher provisioning towards restructured assets, wage arrears and income tax along with an increase in NPA impacted the bank’s profit.

He said fresh slippages were around Rs 1,668 crore during the first quarter, against Rs 865 crore, a year ago.